CONSUELO MACK: This week on WEALTHTRACK, investment strategies for dangerous markets. GMO’s next generation Financial Thought Leader, Ben Inker discusses the unprecedented challenges of a hyperactive Federal Reserve and historically low interest rates. Asset allocation for unusual times is next on Consuelo Mack WEALTHTRACK.
Hello and welcome to this edition of WEALTHTRACK. I’m Consuelo Mack. We live in unusual times. Central banks around the world, led by the Federal Reserve, have taken unprecedented actions to stimulate economic growth, prop up indebted governments, and bail out troubled banks. And because it is an experiment, no one quite knows how it is all going to turn out. One thing we do know for sure is the series of ground breaking actions by the Federal Reserve – keeping short term interest rates near zero for years and more recently buying $85 billion worth of treasury bonds and mortgage backed securities every month- have kept interest rates artificially low. The Fed’s policies are being called “financial repression” by some on Wall Street. What we don’t know is how it’s all going to turn out.